Stablecoin Protocol Level Raises $2.6 Million to Expand Yield Token
Stablecoin protocol Level has raised $2.6 million in a new funding round, increasing total venture capital to $6 million. This funding was led by Dragonfly Capital and supported by several new investors, including Flowdesk and angel investors Sam Kazemian and Albert Chon. The funds will be used for team expansion and marketing efforts.
Key points include:
- Level's stablecoin, lvlUSD, is designed to generate yield through decentralized finance (DeFi) protocols like Aave.
- Annualized yield for staked lvlUSD currently stands at 8.3%, which is higher than yields from tokenized money market funds.
- The market for yield-generating stablecoins is growing, with competitors like Ethena's USDe and tokenized Treasury bills gaining traction.
- Level plans to expand utility for lvlUSD and integrate with Morpho for yield generation soon.
- The protocol aims for a market cap of $200-$250 million.
Level's transparent approach to yield generation differentiates it from traditional stablecoin issuers that do not offer yield on backing reserves.